Opportunities
Flower Delivery Shop in Boulder, CO Area
Sold
Fully staffed location operating for 20 years!
Specifications
This fully staffed flower shop has been in business for 20 years. Operating as the premier supplier for all floral needs throughout Boulder, Colorado, this business focuses on high end weddings and corporate events. They are equipped with two vans and offer delivery services within a 15-20 mile radius and up to 75 miles for weddings and events.
The 2,400 square foot location features a retail space, storage, design space, and two coolers. This business is fully staffed with a general manager, an assistant manager, 4 designers, 1 marketing expert, 2 PT delivery drivers, and 2 PT customer service representatives. The current owner focuses on the administrative tasks, which could be easily absorbed by the current employees.
With non-competing businesses elsewhere needing attention, the current owner sees many opportunities for growth. With an increased focus on wedding sales, increased relationships with funeral homes, and expanded social media engagement – this business is fit to grow substantially.
Business Highlights
- Year Established: 1998
- Location and Service Area: Boulder, Colorado area
- Clients: Individual and business clients
- Services: Floral design, plants, funerals, weddings, events
- Lease: 2,400 sq. ft.: Retails space, storage, design area, coolers
- Reason for Selling: To focus on other businesses in non-competing cities
- Employees: 10: 1 GM, 1 Assistant Manager, 4 designers, 1 marketing, 2 PT delivery, 2 PT customer services representatives
- Hours: M-Sat. 8-5
- Seller Training Period: 180 days transition, if desired
- Growth Opportunities: Increase focus on building wedding sales, add to everyday flower interest, work with funeral homes to increase referral business, foster social media engagement and marketing
- Current Owner’s Responsibilities: Absentee oversight
Financial Highlights
- List Price: $250,000
- Gross Sales:
- 2018: $732,233 Annualized
- 2017: $706,954
- Cash Flow:
- 2017: $83,253
- Assets Included in Purchase*
- Equipment: $30,225: 2 coolers, furniture, fixtures, data processing equipment, wedding equipment
- Vehicles: 2017 ProMaster 1500 fully wrapped
- Inventory: $15,500: Plants, flowers, supplies
- Intangible Assets: Excellent social media reviews, long history of successful operations, repeat customers
*amounts may vary
Cash Flow Analysis
| Description of Financial Statement | P&L Statement Jan. - Nov. | P&L Statement | P&L Statement | P&L Statement | Notes |
| 2018 | 2017 | 2016 | 2015 | ||
| GROSS SALES | $671,214 | $706,954 | $766,188 | $705,441 | |
| Annualized | $732,233 | ||||
| Net Income Shown on Financial Statement | $-22,351 | $17,707 | $42,242 | $67,114 | |
| ADDBACKS | |||||
| Compensation to Owner | $3,990 | $8,121 | $8,298 | $6,832 | |
| Other unrelated Salaries | $3,990 | $41,474 | $32,619 | $0 | |
| 11% Tax on total W2 Salaries | $878 | $5,455 | $4,501 | $752 | |
| Depreciation | $0 | $0 | $12,230 | $8,531 | Non-cash expense |
| Interest | $5,505 | $7,356 | $6,822 | $9,265 | Non-cash expense |
| Contributions/Donations | $870 | $2,140 | $5,281 | $3,879 | Non-onward going expense |
| Health Insurance | $0 | $0 | $0 | $1,387 | Personal Expense |
| Bonus | $500 | $1,000 | $833 | $0 | Personal Expense |
| Business Flowers | $1,438 | $986 | $5,778 | $0 | Flowers for promotional purposes |
| TOTAL ADDBACKS | $17,171 | $66,532 | $76,362 | $30,646 | |
| Seller's Cash Flow = Total Addbacks + Net Income | $-5,180 | $84,239 | $118,604 | $97,760 | |
| Annualized | $-5,180 | ||||
| Profit Margin | -0.77 % | 11.92 % | 15.48 % | 13.86 % |
Typical Clients and Services
Clients:
- Individuals
- Businesses
- Event designers
Services:
- Everyday floral design
- Specialty floral design
- Funerals
- Weddings
- Events
- Plants
- Gifts
- Online ordering
- Phone ordering
Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.
Employees
Total Employees: 10
- 1 General Manager
- 1 Assistant Manager
- 4 designers
- 1 marketing
- 2 PT delivery
- 2 PT customer services representatives
Growth Opportunities
- Increase focus on building wedding sales
- Add to everyday flower interest
- Work with funeral homes to increase referral business
- Foster social media engagement and marketing
Valuation Details
The Firm Business Brokerage used a cash flow valuation methodology to determine the purchase price of the business.
The formula used is as follows:
Cash Flow x Prescribed Multiple = Fair Market Value
Cash flow is the sum of business net income plus any owner perks and any non-onward going expenses.
A multiple is prescribed by a 20 question, 100-point parameter ranking system that is used to analyze the current business health. Each question is based on a scale from 1 to 5: 1 being low, 2 below average, 3 average, 4 above average, 5 high. The average of the responses sum is the business’ prescribed multiple.
For this business, a 2017 cash flow was used with a prescribed multiple is 3. With this information, the computation is as follows:
$83,253 x 3 = $249,759
The fair market value found above positions the business list price at $250,000.
Funding Example
Purchase Price: $250,000
15% Buyer Down Payment: $37,500
15% Seller Financing: $37,500
75% Bank Loan: $175,000
Seller financing 5-year term at a rate of 4.50% equals a monthly loan payment of $699.
Bank loan 8-year term at a rate of 6% equals a monthly loan payment of $2,300.
After business expenses and loan payments, a buyer with a 15% down payment of $37,500 would retain a profit of $47,267, which results in a 126% return on investment in the first year.
A lender is required to have a minimum 1.5 coverage ratio for any business loans extended. At a proposed purchase price of $250,000 with the terms listed above, the coverage ratio is 2.31.
Please note that the decision of whether to extend a loan on any sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available.
Print, sign and send to:
210 N 78th St. 2nd FloorOmaha, NE 68114
Or fax to:
f 402.939.0857